Course Outline

RSM 427 H1S (Fall 2012) Auditing and Information Systems Course Meets: L0101 M 8-10 L0201 M 10-12 Instructor: E-Mail: Webpage: Phone: Office Hours: Teaching Assistant: WO 25 WO 25

Dragan Stojanovic (RT 546) dragan.stojanovic@utoronto.ca http://portal.utoronto.ca 416-978-6819 Mondays 3:30-4:30pm Amy Kwan (amyk.kwan@utoronto.ca)

Course Scope and Mission The main objective of this course is to provide a basic understanding of information systems, their importance, and auditing in a computer based environment. In particular, the course will cover: a broad knowledge of the risks and exposures introduced by computer based information systems; the types of controls that may be used to reduce such risks to an acceptable level; a framework for and case based practice of controls evaluation in a computer based information system; the impact of computer controls on audit strategy; and the opportunities and risks associated with computer assisted audit tests during the audit. This course is about the understanding and management of the risks associated with computer based information systems. It covers potential means to provide control and how to perform audits in these environments. The course uses lectures, case discussion, and assignments, as well as examinations. These methods are used to develop an understanding of business information system risks, management controls and techniques, computer control and security, and the audit process with respect to computer-based systems. There is a heavy emphasis in this course on class participation. Readings will be assigned for students to have completed prior to each session. Students will be expected to contribute actively during these sessions. The main focus will be on problem solving and providing clarification of the reading material and related subject matters.

Course Prerequisites MGT321H1/RSM323H1 Required Readings Information Technology Auditing and Assurance, 3rd Edition by James A. Hall. ISBN 978-1-4390-7911-9 2011 [selected chapters only] o eBook options are also available (at reduced prices) from Nelson Brain website at: http://www.nelsonbrain.com/shop/en/CA/storefront/canada?cmd=CLHead erSearch&fieldValue=9781439079119 IT Control Objectives for Sarbanes-Oxley: The Role of IT in the Design and Implementation of Internal Control over Financial Reporting (2nd Edition) by IT Governance Institute. ISBN 1-933284-76-5 2006 [selected sections only] o Available from www.isaca.org/sox Additional required and recommended readings will be posted on the course website. iClickers We will be using iClickers extensively in this course. Please make sure that you have a registered iClicker before the start of second class (i.e. week 2). When registering your iClicker, use your UTORid (and NOT your student number). Students who do not wish to use iClicker in class will have their final exam re-weighted to 28%. Evaluation and Grades Grades are a measure of the performance of a student in individual courses. Each student shall be judged on the basis of how well he or she has command of the course materials. Evaluation In-Class Presentation In-Class Quizzes Class Work Position Paper: IT and Strategy (Part 1) Position Paper: IT and Strategy (Part 2) Research Project % 5% 8% 32% 10% 5% Due Date Ongoing (starting week 4) Ongoing (starting week 3) Ongoing (starting week 3) October 9th December 5th

Final Exam

20% October 2nd: Groups and Topics October 30th: Literature Review and Research Plan/Proposal December 3rd: Final Project Due 20% During Faculty of Arts & Science Final Examination period

COURSE FORMAT AND EXPECTATIONS In-Class Presentation (5%) This course will emphasize participatory and collaborative learning. As a result, you will help lead a section of class discussion. Additional information will be discussed in the first week of class and posted on the course website.

In-Class Quizzes (8%) In-class quizzes will be conducted in every class using iClickers. These will typically consist of about 5-10 multiple choice questions throughout the class session. Questions that count towards the in-class quiz mark will be clearly marked and identified. In addition, we will count only the best 8 out of 10 sessions (starting with week 3). Each session will carry the same weighting (i.e. 1% of the final mark, even if the number of questions asked in each session is not the same. If a student misses the in-class quiz for a legitimate reason (see the policy on missed tests and assignments below), appropriate documentation will be required and marks will be re-weighted to the final exam. Missed quizzes without appropriate documentation will receive a mark of zero. Head TA will handle all queries around missed in-class quizzes. Additional information will be discussed in the first week of class and posted on the course website. Class Work (32%) Individual and/or group work will be conducted in every class, and part or all of that work will be collected for grading at the end of the class. This will start in week 3, and we will count best 8 out of 10 sessions. Each session will be worth 4% of the final mark. In case of group-work, groups may be randomly assigned. If a student misses class work for a legitimate reason (see the policy on missed tests and assignments below), appropriate documentation will be required and marks will be re-weighted to the final exam. Missed quizzes without appropriate documentation will receive a mark of zero. Head TA will handle all queries around missed class work. Additional information will be discussed in the first week of class and posted on the course website.

Position Paper (15%) Detailed information will be posted on the course website. Late submissions will not be accepted and failure to successfully submit the assignment before the deadline will result in a mark of zero. Missed submissions will be considered justified only in extreme situations (and mark will be allocated to the final exam).

Research Project (20%) Detailed information will be posted on the course website.

Late submissions will not be accepted and failure to successfully submit the assignment before the deadline will result in a mark of zero. Missed submissions will be considered justified only in extreme situations (and an alternative assignment will be arranged with the instructor).

Final Exam (20%) The final examination will be comprehensive and will include all topics covered throughout the semester.

To Use Turnitin.com: Normally students will be required to submit their course essays to Turnitin.com for a review of textual similarity and detection of possible plagiarism. In doing so, students will allow their essays to be included as source documents in the Turnitin.com reference database, where they will be used solely for the purpose of detecting plagiarism. The terms that apply to the universitys use of the Turnitin.com service are described on the Turnitin.com website. For Written Assignments: Please note that clear, concise, and correct writing will be considered in the evaluation of all written assignments. That is, you may lose points for writing that impedes communication: poor organization, weak paragraph development, excessive wordiness, hard-to-follow sentence structure, spelling mistakes and grammatical errors. Students who require additional support and/or tutoring with respect to their writing skills are encouraged to visit the Academic Success Centre (www.asc.utoronto.ca) or one of the College Writing Centres (www.writing.utoronto.ca/writing-centres). These centres are teaching facilities not editing services, where trained staff can assist students in developing their academic writing skills. There is no charge for the instruction and support.

For Group Work:

Both the in-class work and the research project require group-work. Learning to work together in teams is an important aspect of your education and preparation for your future careers. That said, project-based teamwork is often new to students and you are therefore reminded of the following expectations with respect to behaviour and contributions to your team project. 1. Read the document entitled, Working in Teams: Guidelines for Rotman Commerce Students which is available on the RC portal under the Academic Services tab. 2. When working in a team, Rotman Commerce students are expected to: Treat other members with courtesy and respect; Honour the ground rules established by the team; Contribute substantially and proportionally to the final project; Ensure enough familiarity with the entire contents of the group project/assignment so as to be able to sign off on it as original work; Meet the project timeline as established by the team.

3. Resolving differences: Conflicts can and do occur. Conflicts are part of the teams process of learning how to work together effectively and can actually generate exciting debate and creative solutions if managed appropriately.

Student teams are collectively expected to resolve disputes or misunderstandings as soon as they arise (and prior to submission of the final project). In cases where teams are unable to reach a mutually agreeable solution, the entire team must meet with the Rotman Commerce Team Coach** as soon as possible. The Coach will listen to the team and help develop options for improving the team process. All members of the project team must commit to, and, utilize their action plans.

** The Rotman Commerce Team Coach, Nikoleta Vlamis, may be reached at nikoleta@nikoletaandassociates.com for an appointment. Nikoleta is an expert in team dynamics and facilitation. Note that Nikoletas role is to provide guidance, support and advice on team matters not to formally evaluate or assess teamwork for academic purposes.
POLICY AND PROCEDURE Missed Tests and Assignments (including midterm examinations) Students who miss a test or assignment for reasons entirely beyond their control (e.g. illness) may submit a request for special consideration. Provided that notification and documentation are provided in a timely manner, and that the request is subsequently approved, no academic penalty will be applied. In such cases, students must notify Rotman Commerce on the date of the missed test (or due date in the case of course work) and submit supporting documentation (e.g. a medical certificate) to the Rotman Commerce Program Office within one week of the originally scheduled test or due date. Students who do not provide Rotman Commerce or the instructor with appropriate or sufficient supporting documentation will be given a grade of 0 (zero). Note that the physicians report must establish that the patient was examined and diagnosed at the time of illness, not after the fact. The Faculty will not accept a statement that merely confirms a later report of illness made by the student to a physician. Late Assignments Students who, for reasons beyond their control, are unable to submit an assignment by its deadline must obtain approval from the instructor for an extension. Supporting documentation will be required as per the policy on missed tests and assignments. Accessibility Needs The University of Toronto is committed to accessibility. If you require accommodations for a disability, or have any accessibility concerns about the course, the classroom or course materials, please contact Accessibility Services as soon as possible: disability.services@utoronto.ca or http://www.accessibility.utoronto.ca/. Academic Integrity Academic Integrity is a fundamental value essential to the pursuit of learning and scholarships at the University of Toronto. Participating honestly, respectively, responsibly, and fairly in this academic community ensures that the UofT degree that you earn will continue to be valued and respected as a true signifier of a student's individual work and academic achievement. As a result, the University treats cases of academic misconduct very seriously. The University of Torontos Code of Behaviour on Academic Matters http://www.governingcouncil.utoronto.ca/policies/behaveac.htm outlines the behaviours that constitute academic misconduct, the process for addressing academic offences, and the

penalties that may be imposed. You are expected to be familiar with the contents of this document. Potential offences include, but are not limited to: In papers and assignments: Using someone else's ideas or words without appropriate acknowledgement. Submitting your own work in more than one course without the permission of the instructor. Making up sources or facts. Obtaining or providing unauthorized assistance on any assignment (this includes collaborating with others on assignments that are supposed to be completed individually). On test and exams: Using or possessing any unauthorized aid, including a cell phone. Looking at someone else's answers Misrepresenting your identity. Submitting an altered test for re-grading. Misrepresentation: Falsifying institutional documents or grades. Falsifying or altering any documentation required by the University, including (but not limited to), medical notes. All suspected cases of academic dishonesty will be investigated by the following procedures outlined in the Code of Behaviour on Academic Matters. If you have any question about what is or is not permitted in the course, please do not hesitate to contact the course instructor. If you have any questions about appropriate research and citation methods, you are expected to seek out additional information from the instructor or other UofT resources such as College Writing Centres or the Academic Success Centre. Email At times, the course instructor may decide to communicate important course information by email. As such, all UofT students are required to have a valid UTmail+ email address. You are responsible for ensuring that your UTmail+ email address is set up AND properly entered on the ROSI system. For more information please visit http://help.ic.utoronto.ca/category/3/utmail.html Forwarding your utoronto.ca email to a Hotmail, Gmail, Yahoo or other type of email account is not advisable. In some cases, messages from utoronto.ca addresses sent to Hotmail, Gmail or Yahoo accounts are filtered as junk mail, which means that important messages from your course instructor may end up in your spam or junk mail folder. Blackboard and the Course Page The online course page for this course is accessed through Blackboard. To access the course page, go to the UofT Portal login at https://portal.utoronto.ca/ and log in using your UTORid and password. Once you have logged in, look for the My Courses module where youll find the link to all your course websites. If you dont see the course listed here but you are properly registered for the course in ROSI, wait 48 hours. If the course does not appear, go to the Information Commons Help Desk in Robarts Library, 1st floor, for help, or explore the Portal Information and Help at www.portalinfo.utoronto.ca/students and review the Frequently Asked Questions.

Recording Lectures Lectures and course materials prepared by the instructor are considered by the University to be an instructors intellectual property covered by the Canadian Copyright Act. Students wishing to record a lecture or other course material in any way are required to ask the instructors explicit permission, and may not do so unless permission is granted (note: students who have been previously granted permission to record lectures as an accommodation for a disability are, of course, excepted). This includes tape recording, filming, photographing PowerPoint slides, Blackboard materials, etc. If permission is granted by the instructor (or via Accessibility Services), it is intended for the individual students own study purposes and does not include permission to publish them in anyway. It is absolutely forbidden for a student to publish an instructors notes to a website or sell them in any other form without formal permission.

RSM427 Fall 2012 Class Schedule Textbook Readings (additional readings will be posted on portal)

# Date Sep 1 10 Sep 2 17 Sep 3 24

Topic

Due

Introduction and Course Overview None. Understanding Information Systems: Hardware, Software, and Data Bagranoff, Ch. 2

Practice Quiz/Class Work

Strategy and IT

TBA

Quiz/Class Work #1
Research Project: Groups and topics for Approval [Oct 2]

4 Oct 1 IT Governance 5 Oct 8 CLASS Oct 6 15 Oct 7 22

Thanksgiving Monday NO

Hall Ch. 1, 2 (pp. 35-47)

Quiz/Class Work #2 Presentations #1

Position Paper: IT and Strategy (Part 1) [Oct 9]

Hall Ch. 5

Systems Development Life Cycle

Quiz/Class Work #3 Presentations #2 Quiz/Class Work #4 Presentations #3

Research Project: Literature Review and research Plan/Proposal [Oct 30]

Security

Hall Ch. 3

Oct 8 29

Managing Data and Operations Transaction Processing and

TBA

Quiz/Class Work #5 Presentations #4 Quiz/Class Work #6 Presentations #5

9 Nov 5 Application Controls

Hall Ch. 6

Nov 10 12 November Break NO CLASS Nov Assisted Audit Tools and 11 19 Techniques
Application Controls and Computer Hall Ch. 7

Quiz/Class Work #7 Presentations #6 Quiz/Class Work #8 Presentations #7 Research Project: Final Project Due [Dec 3] Quiz/Class Work #9 Presentations #8 Position Paper: IT and Strategy (Part 2) [Dec 5] Quiz/Class Work #10 Presentations #9 During Faculty of Arts and Science Final Exam Period

Nov Auditing the Revenue and 12 26 Expenditure Cycles

Hall Ch. 9, 10

13 Dec 3 ERP and Advanced Topics

Hall Ch. 11

14 Dec 5 Advanced Topics and Review Final Exam

TBA